DEI business case: how to get started?

Would you like to know the keys to a successful DEI business case? You’ve come to the right place!

Diversity, equity and inclusion (DEI) is a hot topic of discussion for companies wondering how to go about it and what actions to take to foster a more inclusive organizational culture. Making the business case for DEI requires thought and strategy to ensure that it’s done right.

Why make an DEI business case?

In DEI, the business case refers to the financial argument in favor of promoting equity, diversity and inclusion within an organization. It highlights the benefits that a company can derive from it: improving employee engagement and experience, innovation, creativity, productivity, attracting and retaining talent, and so on.

The business case is used to convince decision-makers that DEI must be anchored in the company’s business decisions. The aim is to integrate equity, diversity and inclusion objectives into the organization’s overall strategy. It includes the costs of implementing DEI efforts (awareness-raising activities, employee and management training, recruitment campaigns, etc.) and must justify how this investment will benefit the company. In other words, the DEI business case puts forward an opportunity, i.e. a gain or benefit for the organization.

And there’s no shortage of financial arguments! For example, numerous studies have already shown that the most ethnoculturally diverse companies are 36% more profitable than the least diverse. The profitability gap between the most and least diversified companies on the basis of gender alone is 48% (Source: McKinsey).

Three ways to build your DEI business case

The first step is to align the DEI vision with the company’s overall strategy. We then review the DEI foundations to ensure that all organizational spheres are well connected.

Then, to build a business case, you need to ask the right questions:

• What resources are dedicated to DEI? We’re talking here about resources such as budget, employees and tools, etc.
• Who will be responsible for the governance of the DEI strategy? Who will be responsible for planning, implementing and monitoring initiatives?
• Who will be accountable for its success? It’s also important to establish clear, measurable objectives to ensure that the DEI strategy is followed and achieves the desired results.
• How do you position yourself against the competition? Position yourself effectively in the competitive marketplace by identifying your company’s strengths and weaknesses. Then develop an appropriate strategy to maximize your chances of success.

By addressing these issues, the company can understand the benefits and risks associated with developing a DEI strategy. It also helps to define a clear governance structure and ensure that the desired results are achieved.

And finally, the financial aspect should not be the only argument for establishing a business case. Understanding the challenges faced by people from multinational backgrounds is essential.

Beware of the DEI business case backlash

While the DEI business case can contribute to a company’s profitability, it shouldn’t be its core business. Equity, diversity and inclusion must be an end in itself, rather than a means to an end.

A study by two university professors, Oriane Georgeac and Aneeta Rattan, has shown that the DEI business case can be misperceived by people from diverse backgrounds for the following reasons:

• They are more afraid of being stereotyped, and of the company seeing them as interchangeable with other members of their group;
• They are less likely to say they want to join a company that uses the financial argument.

It is therefore preferable to prioritize the human element rather than the dollar when implementing an action plan. Directors and managers must also embody these values in their leadership to remain consistent with the efforts required of employees.

Here are a few statistics that demonstrate the relevance of management’s DEI commitment for the benefit of the entire organization:

• 84% of employees feel valued and respected;
• 83% of employees say their direct managers are also committed to DEI;
• 86% say their direct managers create a sense of psychological security (Source HRD).

Fairer alternatives?

When the DEI business case isn’t well put together, and DEI is seen as a financial tool, we can end up with a diminished sense of belonging among employees‧es. This observation begs the question: what other alternatives are there? First, we can talk about the fairness case, which focuses solely on the intrinsic value of DEI without reference to economic benefits. This approach emphasizes the importance of diversity and inclusion for their own sake, and not just for their economic impact.

The other approach that can be considered is neutrality: have you noticed that you’ve never had to justify the presence of well-represented groups in the workplace? So why would you need to justify the presence of under-represented groups? From this point of view, diversity and inclusion are values that don’t need to be questioned.

At URelles, we take all these points into account when supporting organizations. Are you an SME? Would you like to benefit from our expertise in building your DEI business case, and ensuring its success? Don’t hesitate to contact us!